Fibre-optic firm posts double-digit growth in revenue

E-NET, THE company that has the contract to manage the Government’s fibre-optic networks in 27 towns and cities, says it had “double-digit revenue growth” during its financial year to the end of April.

Chief executive Conal Henry said the recent €17 million, 15-year deal with Vodafone was hugely significant for E-net and the metropolitan area networks that have in the past been criticised for not delivering value for money.

The Vodafone deal was driven by the demand for mobile broadband services, which are now used by over 300,000 subscribers, and Mr Henry said it was significant that a one-time Eircom subsidiary was using the networks. Eircom is the only major telco not to use the networks and says their infrastructure simply duplicates its own networks in provincial towns.

Mr Henry said the deal made E-net Vodafone’s primary data partner outside the Dublin area. E-net already has similar relationships with Cable Wireless, Colt Telecom and Verizon, while its “most significant relationship” is with BT Ireland.

“For our customers, moving old networks onto us is more difficult, but as they develop, new ones they are going with us,” said Mr Henry. “All the big fixed-line carriers other than Eircom are using us.”

Describing the takeover bids for Eircom as a “distraction”, Mr Henry suggested even with no more expenditure, the Government could adopt policies that would foster competition. He said he “fully supports” the Minister’s 10-point plan on broadband strategy and would like to see it delivered as quickly as possible.

He said Eircom’s copper-based network was becoming less important and the Government should support the establishment of an “open-fibre network” that would interact with Eircom’s but would be open to all operators. He said this strategy was being adopted in Australia, Holland and France.

While conceding it would probably benefit E-net, he said the basis of a nationwide high-capacity fibre-optic network could be created by pooling the existing assets owned by State and private sector companies. In addition to the 27 metropolitan networks, BT Ireland has a fibre network along the mainline railway tracks, ESB Telecom has fibre-optic cable built into its core transmission network and Smart Telecom controls the T50 network that connects Dublin’s main business parks.

“The beauty of fibre is that it’s more open than copper, where everyone has to run the same protocols,” explained Mr Henry. “With fibre every operator can create their own services.”

E-net has preferred bidder status for the second phase of the networks project that will cover an additional 66 towns and expects to shortly be awarded the management contract. The second phase was built at a cost of €80 million, the same investment that went into the original build.